Central Bank of Chile sets first counter-cyclical buffer

BCC also warns government could face financing problems

Rosanna Costa, Central Bank of Chile
Rosanna Costa, Central Bank of Chile
Photo: Banco Central de Chile/Flickr

The board of the Central Bank of Chile (BCC) imposed a counter-cyclical capital buffer (CCyB) for the first time at its May 23 financial stability meeting.

The five-member board unanimously backed the move, which requires banks to set aside the equivalent of 0.5% of risk-weighted assets within a year. Chile amended its banking law to include a CCyB provision in 2019.

The board said it imposed the buffer requirement partly because of “the deterioration of financial conditions since late last

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account